Packer
Cattle feeders were rewarded in last week’s standoff with higher prices in all regions. Packers will continue to slow harvest rates in an effort to hold the market in check.
Packers are picking around the edges and dragging their feet when looking at higher asking prices, but the bull market remains in place with the cattle feeder gaining leverage each week.
With estimates of 82% capacity utilization of fed beef plants next year and 65% for cow slaughter plants, Nalivka says, “Rest assured - there will be decisions made.”
The spread between cattle feeding margins and beef packer margins has now reached $500 per head as packing losses increase. Pork producer margins are the highest of the year.
Cattle feeders continued to leverage tight supplies of market-ready cattle to push markets higher until packers were forced to be more aggressive.
There’s a $400 spread between cattle feeding margins and packer margins – now in the cowboy’s favor. Cattle harvest is lower as packers reduce hours, a signal their margins are in the red.
Generally, a good week for agriculture with cattle steady to stronger despite a significant rally in the corn market. Packers try to hide their hand, but without inventory they must pay up to keep plants running.
Packers searching for cattle last week hinted at their looming predicament – showlists too small to utilize current industry capacity.
Attractive wholesale beef prices have encouraged packers to give up some inventory with aggressive slaughter numbers. Packers may need to get creative in the weeks ahead as numbers decline.
Cattle feeding margins improved $43 per head last week as cash prices gained nearly $2 per cwt.
Cattle feeding margins are rapidly declining as cash cattle prices retreat from spring highs
Cattle feeding margins jumped nearly $17 per head higher last week to average $196.50.
The increase in margins was the third consecutive weekly gain, leaving average profits above $230 per head.
The pain eased somewhat for cattle feeders last week, but losses remain more than $170 per head.
It was another ugly week for cattle feeders.
Beef packers put away the red ink last week as they turned modest profits on every animal processed. Feedyard margins, however, slipped a little further away from positive.
Cash cattle prices dipped nearly 50 cents per cwt.
Whether you’re cattle feeder or packer, ledger sheets are full of red ink.
Cattle feeding margins declined $45 per head last week, leaving average per head losses at more than $77.
Cattle feeding margins improved nearly $25 per head last week, but average per head losses remain more than $32.
After two weeks of losses, cattle feeding margins are back in the black.
Cattle feeders began the New Year with black ink on their closeouts, but profits were minimal
Cattle feeding margins declined nearly $53 per head last week, leaving average losses at $56 per head.
The financial pain of feeding cattle eased again last week, but losses remain more than $125 per head.
The pain eased somewhat for cattle feeders last week, but losses remain more than $97 per head.
Cattle feeding margins took another turn south last week after a nearly $4 per cwt. decline in fed cattle prices.
Cattle feeding margins took another tumble last week after a $1 per cwt. decline in fed cattle prices.
Cattle feeders added a little powder and lipstick to closeouts this week, but the ugly continues to shine through.
Last week saw dramatic improvement in cattle feeding margins, yet triple-digit losses remain.
A $6 per head decline in cattle feeding margins is tolerable, unless you were already losing $112.